Company Background

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two
varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was
started by Signor Felice Bisleri who first brought the idea of selling bottled water in India.
Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles
under the brand name 'Bisleri'. Later Parle switched over to PVC non-returnable bottles & finally
advanced to PET containers.

Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and
the turn over has multiplied more than 20 times over a period of 10 years and the average growth
rate has been around 40% over this period. Presently it has 8 plants & 11 franchisees all over
India. It has presence covering the entire span of India. It commands a 60% market share of the
organized market. Overwhelming popularity of 'Bisleri' & the fact that it pioneered bottled water
in India, has made it synonymous to Mineral water & a household name.

It has developed 8 unique pack sizes to suit the need of every individual. It is present in 250ml
cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which
are the returnable packs. Till date the Indian consumer has been offered Bisleri water, however
in its effort to bring something refreshingly new, it has introduced Bisleri Natural Mountain
Water - water brought from the foothills of the mountains situated in Himachal Pradesh.
Hence its product range now comprises of two variants: Bisleri with added minerals & Bisleri
Mountain Water.

Bisleri Water is put through multiple stages of purification, ozonised & finally packed for
consumption. . Rigorous R&D & stringent quality controls has made it the market leader in the
bottled water segment. Strict hygiene conditions are maintained in all plants.

In its endeavor to maintain strict quality controls each unit purchases performs & caps only from
approved vendors. It produces its own bottles in-house. It has recently procured the latest world
class state of the art machineries that put it at par with International standards. This has not only
helped it improve packaging quality but has also reduced raw material wastage & doubled
production capacity.

The company that recently launched its premium brand with medical values Vedica, is expecting
a 50 per cent growth in sales from this brand.

Promoters
Parle was established in 1929 as a confectionery manufacturing unit by late Shri Jayanti Lal
Chauhan. In 1967, Mr. Ramesh. J. Chauhan son of Late Shri Jayanti Lal Chauhan, a MIT and
MBA Graduate from University of Boston, USA, took over the helm of the Group. It was due to
his foresightedness the group bought Italian Mineral Water Company – Bisleri in 1969 that has
grown to become the Leading Brand BISLERI in Indian market. Presently BISLERI enjoys
number one position in the water market.

The Group also was a pioneer in Indian market for introducing aerated drinks like Thums up,
Limca, Citra and Gold Spot. These products were later sold to MNCs in 1993. Presently the
focus of organization is on packaged and mineral water marketed under the brand name Bisleri.

Bisleri International Pvt. Limited (BIPL) has the history of being the undisputed leader with
constant growth and development in an ever-changing environment. Bisleri International Pvt.
Ltd is 40 years old. It has presently 8 own manufacturing units, 11 franchisee and 32 contract
packing facilities across India. We will be expanding the business to reach far & wide. Our
plants are now equipped with sophisticated machinery & state of the art technology.

Bisleri’s Vision
Its vision is to be the dominant player in the branded water business where the second player is
less than 20% of its business.

Bisleri’s Mission
It is in the business to serve the customer. He is the most important person. He is the only one
who pays. He deserves the best quality and presentation at a worth of the price. It must have
world class quality, at the lowest production & distribution cost. This will make it an unbeatable
leader, and will have satisfied loyal customers.

Bisleri’s values
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness & Transparency.

Organisational Structure

• Senior Sales Manager

• ASM under the Senior Sales Manager
• ASM has zones divided such as north, east, west, south and central
• Sales Executive for ASM in all the 5 zones
• 5 Corporate Sales person for all the 5 zones
• Their truck drivers are their salesmen
• AIMS AND ESTABLISHMENT OF THE COMPANY:
•
• Genesis
The name that epitomizes mineral water today was first introduced in Mumbai in the
early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with the idea of
selling bottled water in India. His company Bisleri Ltd. offered mineral water in two
variants - bubbly and still.
In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass
bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC non-
returnable bottles and finally advanced to PET containers.

Expansion
Under the leadership and vision of Mr. Ramesh J. Chauhan, Bisleri has undergone
significant expansion in their operations. The company has witnessed an exponential
growth with their turnover multiplying more than twenty times in a short span of 10
years. The average growth rate over this period has been around 40% with Bisleri
 enjoying more than 60% of the market share in the organized mineral water segment.
Currently Bisleri has 11 franchisees and 8 plants across India, with plans of setting up 4
new plants on the anvil. The overwhelming popularity of 'Bisleri' and the fact that it is the
pioneers of the bottled water industry in India has made us synonymous to Mineral water
and a household name. So naturally 'When you think of bottled water, you think Bisleri'.
• Rigorous Research and Development and stringent quality controls have made it a
market leader in the bottled water segment. Bisleri has always been committed to offering
every Indian pure and clean drinking water. Hence Bisleri water is put through multiple
stages of purification, ozonisation and is hygienically packed for final consumption.

To maintain strict quality controls in every unit, Bisleri not only purchase caps from
approved vendors, we also manufacture our own bottles, in-house. To be at par with
International standards, they have recently procured the latest state-of-the-art machinery
which has not only helped us improve packaging quality but has also reduced raw
material wastage and doubled production capacity.

You can rest assured that you are drinking safe and pure water when you consume
Bisleri. Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity.

Industry Analysis
Potters Five Forces Model
□ Substitutes
□ New Entrant
□ Bargain Power of Supplier
□ Bargain Power of Customer
□ Industry Rivals
Industry Rivals
Rivals divided into organized and unorganized

• Organised
Coke’s Kinley, PepsiCo’s Aquafina, Mohan Meakins, SKN Beweries and Parle Agro’s
Bailley.

• Unorganised
Local water brands such as H2GO, Blue Label, Kwencher, Yes, etc.

New Entrants
• HUL water purifier Pureit
• Various new local brands (unorganized players)
• Shaw Wallace is also in a process to enter the bottled market in the premium segment.
Substitutes
• Soft drinks
• Water purifiers
• Tap water
• Coconut water
• Vending Machine water
• The most economical drink -nimbu pani

Bargain Power of Supplier

• When the company’s suppliers are able to:
raise price and reduce quantity

Then the supplier power would be high

• Packaging (PET bottles)

• Labeling material

Bargain Power of Customer

• Buyer’s demand

1. Better quality or service

2. Set competitors against each other
At the expense of sellers profitability

• Reason:

1. Industry where many brands fighting for existence and

their share
Large number of choices available to retailer
Low switching cost for retailer

• Prices of other products are more of less the same

1. Brand Loyalty of customer is very low
SWOT Analysis
Analysis of the company on the following parameters :
• Strength
• Weakness
• Opportunities
• Threats

Strength
• Market leader-the biggest strength of Bisleri lies in it being a market leader is the bottled
water industry.
• Brand-Bisleri has a very good brand image to the extent that its name is synonymous to
mineral water
• Customer Loyalty-Bisleri’s customers are hard core brand loyals and this it enjoys good
consumer loyalty.
• Number Of Variants- Bisleri is available in a large number of variants which makes it
consumer friendly as per their requirement.
• 20 Ltrs Jar-Bisleri’s 20 Ltrs jar is very important with its free home delivery as its main
feature

Weakness
• Distribution Network-The distribution network of Bisleri is very weak due to which it is
loosing its market share.
• Dissatisfied distributors & retailers-Bisleri does not give good profit margin and
incentives to its distributors and retailers because of which they are not motivated to
increase its sales volume
• Capacity-Bisleri is not able to meet the market requirements because its production
capacity is not increasing due to which even the distributors do not receive the
requirement quantity on time.
 • Advertisement-Bisleri does not focus much on advertisement and media which is very
important for a brand to sustain itself in the market.
• Price-Bisleri is considered to be very high priced especially its 20Ltrs jar at Rs 75 with
security Rs 150 in price sensitive market.
• Awareness-The customer are not aware of the 7 stage purifying process of Bisleri and the
added minerals which are available.

Opportunities
• Scarcity-The metropolitans and big cities have a scarcity of pure drinking water
which Bisleri can cater.
• Marketing Strategy-Bisleri can focus on better marketing strategies to regain its lost
market share and also tap new markets.
• New Corporates and MNC’s –Bisleri should focus more on the corporates and mnc’s
who deal in bulk to increase its market share.
• Export-Bisleri can exploit the market abrod with its Himalayan and Vedica water
meant especially to export.
• Prospective- The bottled water industry in India is estimated at about Rs 1,000 crore
and is growing at 40 per cent. "By 2010, it will reach Rs 4,000 - 5,000 crore with 33
per cent market for natural mineral water.

Threats
• Increasing competition-The competition is increasing as the market share of Kinley and
Aquafina is rising.
• Competition from local brands as selling Rs. 10 per bottle and providing larger margin to
the retailers and distributers.
• Price sensitive customer-People focus more on low price.
• Increasing Duplicity-The duplicity in the market is rising inspite of steps taken by the
management.
• Unorganised sector-The local brands in the unorganised market are of very low price and
people are ready to take them which is eating away the market.
External Audit
Opportunities
1. Bottled water consumption has
increased 11 percent.
2. According to the S&P Industry
Survey, consumers are drawn
to new smaller beverage
brands that are not sold on a
mass scale.
3. Word Economic Forum’s
annual Davos, Switzerland
gathering grants international
voice.
4. Less developed countries are
in desperate need to improve
community water supplies.
5. Mineral Water sales are
expected to increase 7 to 8
percent in 2011.
6. Disposable income has
increased 6.2 percent.
7. Consumers are striving to drink
and eat their way to better
health than pervious
generations.
8. EPS is expected to rise 7 to 8
percent in 2011.
Threats
1. Consumption of
American beverages is
denounced by foreign
officials in areas where
conflicting interest exist.
2. Multiple lawsuits against
the new beverage for
calorie burning claims in
advertising
3. Smaller, lesser known
brands are turning to major
beer distributors for bottling.
4. Overall carbonated drink
sales have been flat due to
links of sugar to obesity and
high fructose corn syrup to
heart disease.
5. Pepsi and Coke is more
diversified offering
beverage and food
products.
6. High cost of
commodities such as sugar,
and metals used in
production of cans.
7. Many smaller
companies are fierce
competitors around the
world in their local markets.
 CPM – Competitive Profile Matrix

Bisleri Kinley Aquafina

Critical Success Weight Rating Weighte Rating Weighted Rating Weighted
Factors d Score Score Score
Market Share 0.15 4 0.60 3 0.45 2 0.30
Price Comp 0.10 3 0.30 3 0.30 3 0.30
Financial Position 0.12 4 0.48 4 0.48 3 0.36
Product Quality 0.15 3 0.45 3 0.45 3 0.45
Product Lines 0.15 4 0.60 4 0.60 3 0.45
Customer Loyalty 0.15 4 0.60 4 0.60 3 0.45
Employees 0.11 3 0.33 3 0.33 3 0.33
Marketing 0.07 3 0.21 3 0.21 3 0.21
Total 1.00 3.71 3.56 2.85

External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted

Score
Opportunities
1. Bottled water consumption 0.06 4 0.24
has increased 11 percent.
2. According to the S&P
Industry Survey, consumers are drawn to 0.05 2 0.10
new smaller beverage brands that are not
sold on a mass scale.
3. Word Economic Forum’s 0.02 2 0.04
annual Davos, Switzerland gathering
grants international voice.
4. Less developed countries are 0.02 2 0.04
in desperate need to improve community
water supplies.
5. Energy drink sales are 0.06 3 0.18
expected to increase 7 to 8 percent in
2011.
6. Disposable income has 0.05 3 0.15
increased 6.2 percent.
7. Consumers are striving to 0.07 3 0.21
drink and eat their way to better health
than pervious generations.
8. EPS is expected to rise 7 to 8 0.07 4 0.28
percent in 2011.
Threats
1. Consumption of American
beverages is denounced by foreign 0.02 3 0.06
officials in areas where conflicting
interest exist.
2. Multiple lawsuits against the
new beverage for calorie burning claims 0.04 2 0.08
in advertising
3. Smaller, lesser known brands are 0.06 2 0.12
turning to major beer distributors for
bottling.
4. Overall carbonated drink sales
have been flat due to links of sugar to 0.10 2 0.20
obesity and high fructose corn syrup to
heart disease.
5. Pepsi and Coke are more 0.20 3 0.60
diversified offering beverage and food
products.
6. High cost of commodities such 0.10 3 0.30
as sugar, and metals used in production
of cans.
7. Many smaller companies are 0.08 3 0.24
fierce competitors around the world in
their local markets.
TOTAL 1.00 2.84

Internal Audit

Strength
1. Product line.
2. Strong global presence, located in
over 200 countries.
3. Long history has built excellent
brand recognition.
4. Partnership longevity with
established sporting events
including the Olympics.
5. Industry leader in market
capitalization with $112 billion.
6. Return on Equity yielded 30
percent in 2006.
7. Leader of dividend yields of 2.6
Weakness
1. Product line is limited to
beverages.
2. Negative publicity in India
because of Bisleri Soda issues,
has led to poor brand image
and hindered growth there.
3. Lack of management
willingness to place foreign
products into American
markets.
4. Marketing deficiencies due to
turnover in leadership and a 16
percent decrease in advertising
 percent. The company has had 43 spending.
consecutive years of an annual 5. Inventory turnover is only 5.4
dividend increase. compared to Pepsi Co.’s 8.0.

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted

Score
Strengths
1. Product line . 0.09 4 0.36
2. Strong global presence, located in over 0.10 4 0.40
200 countries.
3. Long history has built excellent brand 0.06 4 0.24
recognition.
4. Partnership longevity with established 0.05 4 0.20
sporting events.
5. Industry leader in market capitalization 0.12 4 0.48
with $112 billion.
6. Return on Equity yielded 30 percent in 0.04 4 0.12
2006.
7. Leader of dividend yields of 2.6
percent. The company has had 43 consecutive 0.04 4 0.16
years of an annual dividend increase.
Weaknesses
1. Product line is limited to mineral water. 0.09 1 0.09
2. Negative publicity in India because of 0.03 2 0.06
Bisleri Soda issues, has led to poor brand
image and hindered growth there.
3. Lack of management willingness to 0.02 2 0.04
place foreign products into American markets.
4. Marketing deficiencies due to turnover 0.05 2 0.10
in leadership and a 16 percent decrease in
advertising spending.
5. Inventory turnover is only 5.4 0.05 2 0.10
 compared to Pepsi Co.’s 8.0.
TOTAL 1.00 3.09

SPACE Matrix
Coordinate: (3.6, 2.2)
FS

Conservative Aggressive

C
A IS

Defensive Competitive

ES

Financial Strength
Return on Assets (R
Competitive Advan
Leverage
Market Share
x-axis: -1.4 + 5.0 = 3.6

Net Income
Product Quality
y-axis: 5.4 + -3.2 = 2.2
Coordinate: (3.6, 2.2)

The Boston Consulting Group (BCG) Matrix

Relative Market Share Position

Bisleri
Stars Question Marks
Industry
Sales
Growth
Rate
Cash Cows Dogs

QSPM

Strategic Alternatives
Acquire KKD Produce new
and GLDC diet drinks
that have
Key Internal Factors healthier
Weight sugar
substitutes
Strengths TAS AS TAS
AS
1. Product line. 0.09 2 0.18 4 0.36
2. Strong global presence, located in over 0.10 --- --- --- ---
200 countries.
 3. Long history has built excellent brand 0.06 2 0.12 4 0.24
recognition.
4. Partnership longevity with established 0.05 --- --- --- ---
sporting events.
5. Industry leader in market 0.12 4 0.48 3 0.36
capitalization with $112 billion.
6. Return on Equity yielded 30 percent in 0.04 4 0.16 3 0.12
2006.
7. Leader of dividend yields of 2.6
percent. The company has had 43 0.04 --- --- --- ---
consecutive years of an annual dividend
increase.

Weaknesses
1. Product line is limited. 0.09 4 0.36 1 0.09
2. Negative publicity in India because of
Bisleri Soda issues, has led to poor brand 0.03 --- --- --- ---
image and hindered growth there.
3. Lack of management willingness to 0.02 --- --- --- ---
place foreign products into American
markets.
4. Marketing deficiencies due to turnover
in leadership and a 16 percent decrease in 0.05 --- --- --- ---
advertising spending.
5. Inventory turnover is only 5.4 0.05 4 0.20 1 0.05
compared to Pepsi Co.’s 8.0.
SUBTOTAL 1.00 1.50 1.22

Acquire KKD Produce new

Key External Factors and GLDC diet drinks that
Weight have healthier
sugar
substitutes
Opportunities AS TAS AS TAS
1. Bottled water consumption has 0.06 --- --- --- ---
increased 11 percent.
2. According to the S&P Industry Survey,
consumers are drawn to new smaller 0.05 1 0.05 3 0.15
beverage brands that are not sold on a mass
scale.
3. Word Economic Forum’s annual Davos, 0.02 --- --- --- ---
 Switzerland gathering grants international
voice.
4. Less developed countries are in 0.02 --- --- --- ---
desperate need to improve community water
supplies.
5. Energy drink sales are expected to 0.06 --- --- --- ---
increase 7 to 8 percent in 2011.
6. Disposable income has increased 6.2 0.05 --- --- --- ---
percent.
7. Consumers are striving to drink and eat 0.07 2 0.14 4 0.28
their way to better health than pervious
generations.
8. EPS is expected to rise 7 to 8 percent in 0.07 4 0.28 3 0.21
2011.
Threats
1. Consumption of American beverages is
denounced by foreign officials in areas 0.02 --- --- --- ---
where conflicting interest exist.
2. Multiple lawsuits against the new 0.04 --- --- --- ---
beverage for calorie burning claims in
advertising
3. Smaller, lesser known brands are turning 0.06 --- --- --- ---
to major beer distributors for bottling.
4. Overall carbonated drink sales have
been flat due to links of sugar to obesity and 0.10 2 0.20 4 0.40
high fructose corn syrup to heart disease.
5. Pepsi and Coke are more diversified 0.20 4 0.80 2 0.40
offering beverage and food products.
6. High cost of commodities such as sugar, 0.10 --- --- --- ---
and metals used in production of cans.
7. Many smaller companies are fierce 0.08 --- --- --- ---
competitors around the world in their local
markets.
SUB TOTAL 1.47 1.44
SUM TOTAL ATTRACTIVENESS SCORE 2.97 2.66